Controlling costs is difficult in a growing business. Your company culture can impact your success in managing costs find out how. To listen to the episode hit the play button. To download the episode, right
Controlling costs is difficult in a growing business. Your company culture can impact your success in managing costs find out how.
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Trying to control and manage costs is always difficult in a growing business. Your company’s culture can affect how your organization approaches spending and cost control. As a business owner who wants employees to “think like an owner”, he or she needs to set the example when it comes to managing costs in the business.
*Cutting costs in bad times are evidence that a company doesn’t regularly manage and monitor costs.
*Companies sometimes treat cost cuts with an “anything and everything” approach. Lisa refers to the ax approach.
*When companies make cost reductions, they need to take time to understand the impact of cuts on the business.
*Regularly monitoring financial information and managing costs can help avoid some those types of approaches to cost control.
*Keeping some perks or nice-to-haves at the expense of essential costs sends a bad message to your staff.
*Having select people in the company responsible or only certain areas impacted by cuts can also have a negative impact.
*Ignoring long term savings opportunities is another way entrepreneurs can get cost control wrong.
*Culture is a company’s approach – what it believes, values, and how it behaves to get work done.
*Culture can influence cost control both positively and negatively.
*Lisa explains how bias can impact how you approach costs and also impact the culture as well.
*Process improvement initiatives with a teamwork approach can benefit both culture and cost control efforts over the long term.
*The entrepreneur can positively impact a cost focused culture by being consistent in the way he manages costs and reinforce cost conscious behavior.
*Creating a cost conscious culture – or any cultural attribute – entrepreneurs need to make sure that it lines up with his or her own beliefs, behaviors and values and lines up with his or her actions.
Resources and Links
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Lisa Roberts is a business operations consultant who advises growth company entrepreneurs in successfully managing growth and the challenges they face along the way. She has over 25 years of experience in operations, finance and administration and spent several years in executive roles at a high growth company. She recognizes that there is a fine line between success and failure in a growing business and that entrepreneurs need to focus on managing finances, creating a sound operation and employ good business practices to stay on track. You can find out more about her here